The Consumer Protection Bill seeks to establish an authority to safeguard consumers’ rights.
The Consumer Protection Bill seeks to establish an authority to safeguard consumers’ rights.

Cabinet approves new Consumer Protection Bill

The new Consumer Protection Bill seeks to establish an authority to safeguard consumers’ rights and has provisions for penalty and jail terms in case of adulteration and misleading ads.
By Zia Haq | Hindustan Times, New Delhi
UPDATED ON DEC 20, 2017 11:18 PM IST

The Cabinet on Wednesday cleared tabling of the Consumer Protection Bill 2017 in Parliament that will replace the archaic Consumer Protection Act 1986, aimed at overhauling consumer laws in the light of a changed economy – from online shopping to faulty services, such as a botched-up hotel stay.

The new bill, expected to be tabled in Parliament Thursday, will withdraw an earlier version which underwent changes following a vetting by the parliamentary standing committee.

The bill provides for the creation of a central consumer protection authority for the first time, which will effectively be the national regulator for consumer rights. It also provides for prosecution of celebrities endorsing products with misleading claims, including a ban and fines.

The new bill will attempt to deal with issues arising out of disputes with regard to online purchases. At present, there exists no law for refunds or dispute settlement regarding online shopping. Businesses and manufactures will need to update their processes to conform to the new law, a government official said.

Consumer grievances are currently heard by a three-tier consumer court system. This will continue, but the new authority will have powers to initiate suo moto action and also pass orders on matters of national importance down the three-tier system.

Consumer courts are quasi-judicial in nature. In many instances, they have been unable to effectively deal with “unfair trade practices” due to limitations within the law, said Pradeep Mehta of CUTS International, a consumer rights lobby.

Earlier, unfair trade practices – misleading ads, cheating and overcharging – were dealt with by the Monopolistic and Restrictive Trade Practices (MRTP) Act. When the Competition Act, 2002, replaced MRTP Act, it left out the provisions dealing with “unfair trade practices”, creating a major lacuna in consumer protection.

The bill cleared by the Cabinet corrects this anomaly by vesting the new consumer authority with powers to monitor unfair practices as well as intervene unilaterally with laid-out provisions.

“The buyer-seller relationship is anyways adversarial. I just hope that members and chairperson of the new authority don’t only include retired IAS bureaucrats but include professionals with a background in consumer law and economics,” Mehta said.

Under the current system, the district forum deals with consumer disputes where the value of the goods or the compensation claimed is less than ~ 5 lakh and the state commission hears cases for claims exceeding ~5 lakh but not exceeding ~20 lakh. The national commission hears claims exceeding ~20 lakh and also decides cases challenging lower court verdicts.

An official said the law would clarify the use of class-action suits, provisions for which exist in a myriad of different laws.

Class-action suits will now be extended to consumer laws, so that a complaint against a faulty product or service could be treated as an interest group of people in similar circumstances.

SHARE THIS ARTICLE ON
app
Close
The <span class='webrupee'>₹</span>40,000-crore NIIF was set up in December 2015 as an institution for enhancing infrastructure financing by investing in greenfield (new), brownfield (existing) and stalled projects.(AFP)
The 40,000-crore NIIF was set up in December 2015 as an institution for enhancing infrastructure financing by investing in greenfield (new), brownfield (existing) and stalled projects.(AFP)

NIIF makes equity investment of less than 5,000 cr in 5 yrs

PTI, New Delhi
PUBLISHED ON JAN 24, 2021 02:30 PM IST
  • According to sources, NIIF has made an equity investment of 4,689 crore, while the co-investment by its partners stood at about 7,053 crore at the end of September 2020. The quasi-sovereign wealth fund's total equity investment along with partners stood at 11,742 crore as of September 2020.
Close
Stove Kraft is the fourth company to open an IPO this month after Indian Railway Finance Corporation (IRFC), Indigo Paints and Home First Finance Company.(AP/ Representational)
Stove Kraft is the fourth company to open an IPO this month after Indian Railway Finance Corporation (IRFC), Indigo Paints and Home First Finance Company.(AP/ Representational)

Stove Kraft IPO to open tomorrow: What you need to know

By hindustantimes.com | Written by Meenakshi Ray, New Delhi
PUBLISHED ON JAN 24, 2021 02:27 PM IST
Stove Kraft has fixed a price band of 384-385 a share for its initial public offer and it is expected to fetch 412.62 crore at the upper end of the price band.
Close
A healthcare worker draws a dose of the Moderna Covid-19 vaccine from a vial at a free drive-through coronavirus disease (Covid-19) vaccine clinic.(Reuters Photo )
A healthcare worker draws a dose of the Moderna Covid-19 vaccine from a vial at a free drive-through coronavirus disease (Covid-19) vaccine clinic.(Reuters Photo )

Leaders of Covid-19 vaccine rollout deliver world-beating market gains

Bloomberg
PUBLISHED ON JAN 24, 2021 01:10 PM IST
Traders are rushing to price the global vaccine rollout and betting nations at the forefront will be the fastest to recover from the crisis, lifting their stocks, currencies and bond yields.
Close
The image shows a diamond which will be sold at Sotheby’s in Hong Kong.(Reuters)
The image shows a diamond which will be sold at Sotheby’s in Hong Kong.(Reuters)

Diamond trade is roaring back thanks to stuck-at-home shoppers

Bloomberg
PUBLISHED ON JAN 24, 2021 01:02 PM IST
The boom is being driven by bumper holiday jewelry sales, particularly in the vital US and Chinese markets.
Close
Few of the emerging markets that have started receiving positive FPIs flows this month to date are: Indonesia ($800 million), South Korea ($320 million), Taiwan ($2.3 billion) and Thailand ($113 million). (File Photo (Representative Image))
Few of the emerging markets that have started receiving positive FPIs flows this month to date are: Indonesia ($800 million), South Korea ($320 million), Taiwan ($2.3 billion) and Thailand ($113 million). (File Photo (Representative Image))

FPIs remain net buyers at 18,456 crore in January so far

PTI
PUBLISHED ON JAN 24, 2021 12:25 PM IST
According to depositories data, overseas investors pumped in 24,469 crore into equities but pulled out 6,013 crore from the bonds market between January 1-22.
Close
The BSE benchmark scaled the 50,000-mark for the first time on Thursday.(HT Photos)
The BSE benchmark scaled the 50,000-mark for the first time on Thursday.(HT Photos)

Mcap of 4 of top-10 valued firms jumps over 1.15 lakh crore; RIL biggest

PTI
PUBLISHED ON JAN 24, 2021 11:08 AM IST
The valuation of Reliance Industries Limited jumped 71,033.44 crore to reach 12,99,363.47 crore, becoming the biggest gainer.
Close
The BSE Sensex scaled the 50,000-mark for the first time on Thursday.(PTI)
The BSE Sensex scaled the 50,000-mark for the first time on Thursday.(PTI)

Markets may remain volatile in holiday-shortened week: Analysts

PTI
PUBLISHED ON JAN 24, 2021 11:03 AM IST
Among major earnings to focus on this week are from UCO Bank, Axis Bank, Bank of Baroda, Canara Bank, Hindustan Unilever Limited, Lupin, Maruti Suzuki India and Tata Motors.
Close
Mukesh Ambani, chairman and managing director, Reliance Industries Ltdmint(Mint File Photo )
Mukesh Ambani, chairman and managing director, Reliance Industries Ltdmint(Mint File Photo )

Mukesh Ambani is world’s 11th richest billionaire. Check who else is on the list

By hindustantimes.com | Edited by Kanishka Sarkar, Hindustan Times, New Delhi
PUBLISHED ON JAN 24, 2021 07:27 AM IST
Mukesh Ambani's bet on consumer services -- telecom and retail -- seems to be paying off despite the pandemic
Close
Gadkari said last year that the policy would also help recycle key raw material made available by scrapping vehicles, such as steel, aluminium and plastic, thereby lowering automobile prices.(PTI)
Gadkari said last year that the policy would also help recycle key raw material made available by scrapping vehicles, such as steel, aluminium and plastic, thereby lowering automobile prices.(PTI)

Fee waiver, road tax discount key features of Centre’s draft scrappage policy

By HT Correspondent, New Delhi
PUBLISHED ON JAN 24, 2021 05:17 AM IST
Features of the draft policy, one of whose caveats is that the vehicles that are sent to the scrapyard must be dismantled in an environment friendly way, were discussed by the ministry at the 40th meeting of the transport development council chaired by Union transport minister Nitin Gadkari on Tuesday.
Close
A new trade agreement between the allies is a higher priority for Johnson than it is for Biden.(Reuters)
A new trade agreement between the allies is a higher priority for Johnson than it is for Biden.(Reuters)

UK PM Boris Johnson presses US Prez Joe Biden for new trade deal

AP, Washington
PUBLISHED ON JAN 24, 2021 05:01 AM IST
The push for a new deal came in a broad-ranging call between the two leaders that touched on the global response to the coronavirus pandemic as well as the Biden administration announcing this week that the U.S. would rejoin the Paris climate accord and the World Health Organization, according to a statement from Downing Street.
Close
India has allowed local airlines to fly limited schedules since May after two months of a strict nationwide lockdown, gradually opening up the domestic market.(PTI)
India has allowed local airlines to fly limited schedules since May after two months of a strict nationwide lockdown, gradually opening up the domestic market.(PTI)

India’s domestic aviation operations nearing pre-pandemic levels

Bloomberg
UPDATED ON JAN 23, 2021 10:54 PM IST
As many as 257,613 passengers flew locally as on Jan. 22, compared with 30,000 passengers that traveled by air when such flights were restarted on May 25, Puri said in a Twitter post on Saturday.
Close
Washington : FILE - In this Jan. 21, 2021, file photo, President Joe Biden reacts to a reporters question after signing executive orders in the State Dinning Room of the White House, in Washington. Vice President Kamala Harris, left, and Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, right, look on. AP/PTI(AP01_23_2021_000009B)(AP)
Washington : FILE - In this Jan. 21, 2021, file photo, President Joe Biden reacts to a reporters question after signing executive orders in the State Dinning Room of the White House, in Washington. Vice President Kamala Harris, left, and Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, right, look on. AP/PTI(AP01_23_2021_000009B)(AP)

Oil industry reels as Joe Biden targets fossil fuels in first days

Bloomberg
PUBLISHED ON JAN 23, 2021 06:25 PM IST
  • Officials are worried that technical permitting decisions are being placed in the hands of political appointees, rather than expert regulators in the field. And they’re concerned permits -- or simply changes to them -- will be delayed for existing drilling operations.
Close
Called the US Citizenship Act of 2021, the legislation modernises the immigration system, and also proposes to eliminate the per country cap for employment-based green cards, a move that would benefit thousands of Indian IT professionals.(AFP)
Called the US Citizenship Act of 2021, the legislation modernises the immigration system, and also proposes to eliminate the per country cap for employment-based green cards, a move that would benefit thousands of Indian IT professionals.(AFP)

IT giants Apple, Google welcome Joe Biden's new immigration reforms

PTI, Washington
PUBLISHED ON JAN 23, 2021 05:14 PM IST
On the day one of his presidency on Wednesday, Biden sent a comprehensive immigration bill to Congress which proposes major overhauls to the system.
Close
The ED found that Wadhawans laundered more than <span class='webrupee'>₹</span>2500 crore out of a total <span class='webrupee'>₹</span>6600 crore the company - HDIL - had taken from PMC Bank between 2007 and 2013.(Twitter/@dir_ed)
The ED found that Wadhawans laundered more than 2500 crore out of a total 6600 crore the company - HDIL - had taken from PMC Bank between 2007 and 2013.(Twitter/@dir_ed)

PMC Bank fraud: ED arrests Viva group MD, consultant

By Vijay Kumar Yadav | Edited by Abhinav Sahay, Mumbai
PUBLISHED ON JAN 23, 2021 03:31 PM IST
  • ED's money laundering probe in the PMC Bank case began after the Mumbai police registered a criminal case in September 2019 against HDIL, its promoters Rakesh Wadhawan and Sarang Wadhawan among others.
Close
A salesman shows gold necklaces to a customer at a jewellery showroom in Kolkata in this file photo. (Reuters Photo)
A salesman shows gold necklaces to a customer at a jewellery showroom in Kolkata in this file photo. (Reuters Photo)

Gold prices start the week at 48,332 per 10 gram, fall to 48,861

By hindustantimes.com | Written by Meenakshi Ray, New Delhi
PUBLISHED ON JAN 23, 2021 11:19 AM IST
Gold price was up in the national capital on Monday with a recovery in international prices and rupee depreciation, according to HDFC Securities.
Close
SHARE
Story Saved
OPEN APP